Sukh Ram blames UPA for tepid response to 2G auction

SHIMLA: Former telecom minister Sukh Ram today blamed the UPA government for the tepid response to the 2G auction, saying many technically proven and sound bidders did not participate due to "lack of consistency in government policy".

"The fresh auctions were not successful as it witnessed many technically proven and sound bidders not participating due to lack of consistency in government policy and foreign companies also stayed away from auction in the absence of unambiguous guidelines," the Congress leader said told reporters here.

"I would meet Kapil Sibal and urge him to revert to the policy of competitive bidding framed in 1994 along with sound criteria for auction of spectrum to instill confidence among foreign investors," he said.

He also attacked NDA government for changing the telecom policy of competitive bidding during the tenure of the then minister Pramod Mahajan and urged the UPA government to adopt the telecom policy drafted in 1994 when he held the portfolio of communication.

"In fact, the change in policy by Mahajan led to 2G mess," he said.

"The 1994 policy has helped in earning annual revenue of over Rs 68,000 core without imposing any tax on the people and even a small state like Himachal was contributing Rs 1,000 annually by way of service tax and spectrum charges," he said.

Himachal with a meagre population of 68.56 lakh has over 70 lakh mobile phones and 2.95 lakh fixed lines and telecom sector had generated vast employment opportunities.

He said that policy of "first come first serve" adopted by NDA government instead of "highest tender" was "flawed", with no logical criteria and as a result technically sound bidders had to opt out and multinational companies managed to get the spectrum.

The policy of "first come first serve" was further amended to auction with base price fixed by the government which fell out during implementation and creating legal wrangles which ended up with the Supreme Court cancelling the auction of 2G spectrum.